Question: Determine which one(s) should be selected based on a B/C analysis using an interest rate of 7% per year and a 10-year study period. Assume

Determine which one(s) should be selected based on a B/C analysis using an interest rate of 7% per year and a 10-year study period. Assume independent projects and no budget limit. Note: For selection, select either YES or NO. For B/C Ratio, select the correct answer in each column.

Alternative 1 Alternative 2 Alternative 3 Alternative 4
Initial cost, $ 50,000 95,000 110,000 75,000
M&O Cost, $/year 40,000 64,000 35,000 30,000
Benefits, $/year 120,000 180,000 76,000 52,000
Disbenefits, $/year 30,000 35,000 28,000 14,000
B/C Ratio 1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO 1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO
1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO
1.91,0.75,1.87,0.93,1.12,1.54,1.82,0.95,YES,NO
Selection Yes or No
Yes or No
Yes or No
Yes or No

Note: For selection, select either YES or NO. For B/C Ratio, select the correct answer in each column.

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